Mon Oct 07 17:01:28 UTC 2024: ## India Set to Ditch Fossil Fuels by 2030: Reserve Bank of India
**New Delhi, India** – India’s dependence on fossil fuels is poised to dwindle by the end of this decade, according to the Reserve Bank of India (RBI). In a recent report, the central bank projected that renewable energy sources will surpass 50% of global electricity generation by 2030, fueled by record investment in clean technologies.
The RBI emphasized the urgency of transitioning to a low-carbon future, highlighting the need to triple renewable energy capacity by 2030 to meet net-zero emissions targets by mid-century. “For every dollar invested in fossil fuels, an average of $3 needs to be invested in low carbon energy over the remainder of the decade,” the report stated.
While India’s current reliance on fossil fuels is significant, with 7% GDP growth largely dependent on imported crude oil, the government has set ambitious goals. Prime Minister Narendra Modi has committed to reaching 500GW of renewable energy capacity by 2030, a substantial increase from the current 135GW.
The government’s “green transition” strategy includes financial inclusion through various instruments like green debt and equity issuance, as well as attracting foreign investment. The RBI estimates that India will need $0.4 trillion in green investments over the next six years, with the private sector playing a crucial role in infrastructure development.
“India’s green horizon requires mammoth financing levels,” noted RBI Deputy Governor Michael Patra, adding that the country aims to achieve fossil fuel independence by 2047 and net zero emissions by 2070. The estimated cost of these ambitious goals is projected at $10.1 trillion.
With 100% foreign direct investment permitted in the renewable energy sector and relaxed norms for green project funding, the flow of climate finance is expected to increase, further strengthening India’s shift towards a sustainable energy future.
First Piper 